Class 12 Accounting Corporate Financial Statements Notes and Important Questions
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Notes for Class 12 Corporate Financial Statements (Accounting) are shown above.
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Important Questions
The Trial Balance of a company Ltd. as on 31st Chaitra last year is given below:
Particulars | Debit Rs. | Particulars | Credit Rs. |
|---|---|---|---|
Opening inventory | 60,000 | Sales | 520,000 |
Sales commission | 40,000 | Creditors | 30,000 |
Purchases | 350,000 | Other service revenue | 40,000 |
Stationery | 9,000 | 10% Debentures | 100,000 |
Rent | 20,000 | Share capital | 500,000 |
Salary | 60,000 | Interest on investments | 15,000 |
Interim Dividend | 8,000 | Retained earnings | 40,000 |
Equipment | 100,000 | ||
Prepaid insurance | 10,000 | ||
Cash | 17,000 | ||
Biologic assets | 60,000 | ||
10% investment | 150,000 | ||
Advertisement expense | 10,000 | ||
Land and building | 300,000 | ||
Account receivables | 41,000 | ||
Interest expenses | 10,000 | ||
Total | 1,245,000 | Total | 1,245,000 |
Additional Information:
i. Closing inventory – Rs. 120,000
ii. Prepaid insurance was expired to Rs. 8,000.
iii. Depreciation charged on equipment by 10% and on building by 5%.
iv. Provision for income tax @ 25%.
a. Profit or Loss statement based on NFRS
b. Statement of financial position based on NFRS
The trial balance of a company limited as on last year is given:
Particulars | Debit (Rs.) | Particulars | Credit (Rs.) |
|---|---|---|---|
Opening Stock | 1,50,000 | Share Capital | 3,00,000 |
Wages | 40,000 | 10% Bank Loan | 1,50,000 |
Purchases | 4,50,000 | Commission | 20,000 |
Rent | 30,000 | Creditors | 80,000 |
Interest on Bank Loan | 10,000 | Profit and Loss A/c | 50,000 |
Salaries | 60,000 | Sales | 6,15,000 |
Furniture | 1,00,000 | ||
Debtors | 80,000 | ||
Bad Debts | 10,000 | ||
Carriage | 5,000 | ||
Prepaid Insurance | 15,000 | ||
Machinery | 2,00,000 | ||
Cash | 25,000 | ||
Goodwill | 40,000 | ||
Total | 12,15,000 | Total | 12,15,000 |
Additional Information:
a. Closing Stock = Rs. 2,10,000
b. Outstanding Wages = Rs. 5,000
c. Prepaid Insurance expired = Rs. 10,000
d. Provision for tax = Rs. 10,000
Income Statement and Classified Balance Sheet
Write any two items of assets.
Prepare adjustment entry of provision for tax of Rs. 1,00,000.
A trial balance on 31st Ashar last year of a company is as follows:
Particulars | Dr. Rs. | Cr. Rs. |
|---|---|---|
Purchase | 3,20,000 | - |
Opening stock | 20,000 | - |
Prepaid insurance | 18,000 | - |
Rent | 36,000 | - |
Salary | 60,000 | - |
Sales commission | 22,000 | - |
Plant and equipment | 3,00,000 | - |
Advertising | 16,000 | - |
Debtors | 40,000 | - |
Interest | 10,000 | - |
Cash and bank balance | 42,000 | - |
Biological assets | 80,000 | - |
Investment | 2,20,000 | - |
Audit expenses | 34,000 | - |
Share capital | - | 4,00,000 |
Sales | - | 6,70,000 |
Creditors | - | 30,000 |
Commission | - | 18,000 |
Loan | - | 1,00,000 |
Total | 12,18,000 | 12,18,000 |
Additional information:
i. Closing stock: Rs. 32,000
ii. Prepaid insurance was expired: Rs. 12,000
iii. Depreciated plant and equipment by 10%
iv. Provision for tax: 30%
Required:
(a) Profit or loss statement based on NFRS
(b) Statement of financial position based on NFRS
-Multi-step income statement
-Statement of financial position
A trial balance on 31st Ashar last year of a company is as follows:
Particulars | Dr. (Rs.) | Cr. (Rs.) |
|---|---|---|
Purchase | 3,20,000 | – |
Opening stock | 20,000 | – |
Prepaid insurance | 18,000 | – |
Rent | 36,000 | – |
Salary | 60,000 | – |
Sales commission | 22,000 | – |
Plant & equipment | 3,00,000 | – |
Advertising | 16,000 | – |
Debtors | 40,000 | – |
Interest | 10,000 | – |
Cash and bank balance | 42,000 | – |
Biological assets | 80,000 | – |
Investment | 2,20,000 | – |
Audit expenses | 34,000 | – |
Share capital | – | 4,00,000 |
Sales | – | 6,70,000 |
Creditors | – | 30,000 |
Commission | – | 18,000 |
Loan | – | 1,00,000 |
Total | 12,18,000 | 12,18,000 |
Additional Information:
i) Closing stock: Rs. 32,000
ii) Prepaid insurance expired: Rs. 12,000
iii) Plant & equipment were depreciated by 10%
iv) Provision for tax: 30%
Required:
Multi-step Income Statement
Required:
Statement of Financial Position
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Exam
Past Question Analysis
Historical exam-pattern data from past NEB question papers — not a prediction of future questions.
8
Question Items
12
Total Marks
3
Papers Appeared In
| Year | Question Items | Marks |
|---|---|---|
| 2082 | 3 | — |
| 2081 | 2 | 2 |
| 2080 | 3 | 10 |
Also appears in 5 model questions (not counted above — model sets aren't actual NEB exam history).
This page covers Corporate Financial Statements, chapter 4 of 15 in the Class 12 Accounting syllabus set by the National Examination Board (NEB). 20 important questions for this chapter are available, each with a full solution.
For subjects like this one, examiners tend to reuse similar question patterns year to year — comparing this chapter's important questions against recent old NEB papers is one of the more efficient ways to revise.